When you leave a company, you have four options regarding your 401(k) plan.

You can keep using your existing plan in most cases. However, if you have $1,000 or less, the company will probably write you a check and terminate the plan.

Be sure the investment choices you have will consistently support your long-term retirement plan. Also, be aware of the costs associated with the plan.

In all cases with a 401(k) plan, check with the administrator of the plan. The discussion should include any legal requirements/restrictions, fees to be paid, and investment choices.

If you have a loan from the plan, you will be required to pay it off within a certain amount of time. If you miss the date, it will be considered a taxable distribution.

A second option is to roll the plan with your old company into your new company plan. You will need to check with the administrator of the new company plan regarding rules for participation. There is often a waiting period before you can participate as a new employee.

Once you determine you can do a transfer you can do it in one of two ways. The first is a direct transfer from trustee to trustee. This is the most efficient method in most cases. The administrator will help you do it.

The other way is to take a distribution from the old company and transfer it to the new company within 60 days. It will still be a tax-free transfer. There is more paperwork and a danger of missing a deadline and causing a taxable distribution.

Be sure to review costs and investment options.

The third option is a cash-out. Be very careful with this. Check out the tax consequences. If you are younger than 59 and a half, you may incur a 10% federal tax penalty in addition to the regular tax.

Depending on the amount of money involved and the use of the money, you could be doing permanent damage to your long-term retirement plan.

The fourth option is the one I recommend the most.

It is to roll your existing 401(k) into your own individual retirement account (IRA). This is for people who want a totally independent way to manage their own situation. I suggest staying away from product trustees such as banks, insurance companies, Wall Street brokerage houses, and mutual fund companies. Choose an independent trustee like Schwab or T.D. Ameritrade.

Once you choose the trustee, then carefully craft an investment game plan. With the independent trustee, you will have significantly more investment choices and flexibility.

There are many variables to consider. If you would like a coach or advisor, consider using an independent, fee-only certified financial planner.

Vern Hayden is a certified financial planner and the author of “Getting an Investing Game Plan.”

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